Business Daily from THE HINDU group of publications
Friday, Jul 04, 2008
ePaper | Mobile/PDA Version | Audio
Business Daily from THE HINDU group of publications Friday, Jul 04, 2008 ePaper | Mobile/PDA Version | Audio |
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Corporate
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New Projects Greenply to invest Rs 370 cr in 2 new units
Suresh P. Iyengar Mumbai, July 3 Greenply Industries Ltd, one of the leading plywood and laminate company, plans to set up a medium density fibre (MDF) facility in Uttarakhand and a lamination unit in Himachal Pradesh with an aggregate investment of Rs 370 crore spread over two years. Mr Saurabh Mittal, Jt. Managing Director, Greenply Industries, said the investment will be through a combination of debt, equity and internal accruals with debt contributing about 75 per cent. The company does not expect the present uncertainty to impact its fund raising as it is in the final stage of tying up with few banks. On the equity part, Mr Mittal said “We are aware that valuation is an issue and are well prepared to handle it. However, the board will take the final call on internal accruals and equity”. The new MDF facility will be of 600 cubic metres a day, while the lamination unit will be of 12 million square metres a year. The company in November acquired a unit in Rajkot for Rs 6 crore and will be spending another Rs 6 crore in modernisation. The new plant in Himachal Pradesh will have provision to produce lamination of different size of 4x8 ft, 4.5x10 ft, 5x12 ft and 6x12 ft to cater the international demand. The company has recently set up a US subsidiary and exports laminates to 25 countries. Exports, which rose about 35 per cent last financial year, contributed 8 per cent of the total revenue. Pricing pressureGreenply Industries has hiked prices in two instalments last two months. Plywood products have been marked up 2-12 per cent, decorative veneers 6 per cent and lamination 7-8 per cent. The sharp rise in input cost such as chemicals, timber and craft paper has forced us to hike prices, said Mr Mittal. Being a net importer, depreciation in value of rupee against dollar has also impacted our bottomline, he added. Greenply Ind net up 50% More Stories on : New Projects | Interiors & Homes
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